The Most Important Part of the Observation of Inventory Is

question 54

Multiple Choice

The most important part of the observation of inventory is determining whether

• A)the inventory-takers are qualified.
• B)the physical count is being taken in accordance with the client's instructions.
• C)the counts are accurate.
• D)obsolete inventory has been identified.

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Definitions:

Equilibrium Price

The cost at which the amount of a product or service sought after is equal to the amount available, leading to equilibrium in the market.

Equilibrium Quantity

The quantity of goods or services demanded equals the quantity supplied at the market price.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.